SHOALS TECHNOLOGIES GROUP -A (SHLS) Stock Fundamental Analysis
USA - NASDAQ:SHLS - US82489W1071 - Common Stock
9.08 USD
-0.07 (-0.77%)
8.91 USD
-0.17 (-1.87%)
We assign a fundamental rating of 6 out of 10 to SHLS. SHLS was compared to 92 industry peers in the Electrical Equipment industry. SHLS has an excellent financial health rating, but there are some minor concerns on its profitability. SHLS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SHLS was profitable.
SHLS had a positive operating cash flow in the past year.
SHLS had positive earnings in each of the past 5 years.
Of the past 5 years SHLS 4 years had a positive operating cash flow.
1.2 Ratios
SHLS has a better Return On Assets (2.66%) than 75.00% of its industry peers.
SHLS has a better Return On Equity (3.67%) than 72.83% of its industry peers.
With a decent Return On Invested Capital value of 4.09%, SHLS is doing good in the industry, outperforming 69.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SHLS is below the industry average of 10.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 3.67% | ||
| ROIC | 4.09% |
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
1.3 Margins
SHLS has a better Profit Margin (5.28%) than 78.26% of its industry peers.
In the last couple of years the Profit Margin of SHLS has declined.
The Operating Margin of SHLS (10.32%) is better than 79.35% of its industry peers.
In the last couple of years the Operating Margin of SHLS has declined.
SHLS has a Gross Margin of 33.70%. This is in the better half of the industry: SHLS outperforms 78.26% of its industry peers.
SHLS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.32% | ||
| PM (TTM) | 5.28% | ||
| GM | 33.7% |
OM growth 3Y-8.94%
OM growth 5Y-7.19%
PM growth 3Y77.6%
PM growth 5Y-19.03%
GM growth 3Y-2.8%
GM growth 5Y3.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHLS is destroying value.
The number of shares outstanding for SHLS has been reduced compared to 1 year ago.
Compared to 5 years ago, SHLS has about the same amount of shares outstanding.
Compared to 1 year ago, SHLS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.22 indicates that SHLS is not in any danger for bankruptcy at the moment.
SHLS has a better Altman-Z score (5.22) than 82.61% of its industry peers.
SHLS has a debt to FCF ratio of 10.90. This is a negative value and a sign of low solvency as SHLS would need 10.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.90, SHLS is in the better half of the industry, outperforming 66.30% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that SHLS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.23, SHLS is in the better half of the industry, outperforming 61.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 10.9 | ||
| Altman-Z | 5.22 |
ROIC/WACC0.48
WACC8.59%
2.3 Liquidity
SHLS has a Current Ratio of 2.34. This indicates that SHLS is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.34, SHLS is doing good in the industry, outperforming 67.39% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that SHLS should not have too much problems paying its short term obligations.
SHLS has a better Quick ratio (1.64) than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
SHLS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.81%.
Measured over the past years, SHLS shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.95% on average per year.
Looking at the last year, SHLS shows a very negative growth in Revenue. The Revenue has decreased by -18.35% in the last year.
SHLS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.54% yearly.
EPS 1Y (TTM)-10.81%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%50%
Revenue 1Y (TTM)-18.35%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%32.92%
3.2 Future
The Earnings Per Share is expected to grow by 15.50% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.37% on average over the next years. This is quite good.
EPS Next Y23.27%
EPS Next 2Y21.64%
EPS Next 3Y20.08%
EPS Next 5Y15.5%
Revenue Next Year17.42%
Revenue Next 2Y15.68%
Revenue Next 3Y13.8%
Revenue Next 5Y11.37%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.52, the valuation of SHLS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SHLS indicates a somewhat cheap valuation: SHLS is cheaper than 76.09% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.83. SHLS is around the same levels.
Based on the Price/Forward Earnings ratio of 18.60, the valuation of SHLS can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SHLS is valued cheaper than 82.61% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SHLS to the average of the S&P500 Index (32.68), we can say SHLS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.52 | ||
| Fwd PE | 18.6 |
4.2 Price Multiples
71.74% of the companies in the same industry are more expensive than SHLS, based on the Enterprise Value to EBITDA ratio.
SHLS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SHLS is cheaper than 66.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 125.73 | ||
| EV/EBITDA | 30.49 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SHLS may justify a higher PE ratio.
A more expensive valuation may be justified as SHLS's earnings are expected to grow with 20.08% in the coming years.
PEG (NY)1.18
PEG (5Y)N/A
EPS Next 2Y21.64%
EPS Next 3Y20.08%
5. Dividend
5.1 Amount
No dividends for SHLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.08
-0.07 (-0.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners117.35%
Inst Owner Change0.27%
Ins Owners0.81%
Ins Owner Change0.93%
Market Cap1.52B
Revenue(TTM)399.21M
Net Income(TTM)21.12M
Analysts78.46
Price Target8.81 (-2.97%)
Short Float %14.5%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.47%
Min EPS beat(2)-23.86%
Max EPS beat(2)18.92%
EPS beat(4)1
Avg EPS beat(4)-10.95%
Min EPS beat(4)-23.86%
Max EPS beat(4)18.92%
EPS beat(8)4
Avg EPS beat(8)-1.9%
EPS beat(12)8
Avg EPS beat(12)10.2%
EPS beat(16)11
Avg EPS beat(16)4.34%
Revenue beat(2)2
Avg Revenue beat(2)5%
Min Revenue beat(2)3.87%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)3.52%
Min Revenue beat(4)1.47%
Max Revenue beat(4)6.14%
Revenue beat(8)5
Avg Revenue beat(8)1.19%
Revenue beat(12)9
Avg Revenue beat(12)2.72%
Revenue beat(16)10
Avg Revenue beat(16)1.43%
PT rev (1m)16.7%
PT rev (3m)30.72%
EPS NQ rev (1m)-0.98%
EPS NQ rev (3m)8.71%
EPS NY rev (1m)0.44%
EPS NY rev (3m)9.94%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)9.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.52 | ||
| Fwd PE | 18.6 | ||
| P/S | 3.8 | ||
| P/FCF | 125.73 | ||
| P/OCF | 48.36 | ||
| P/B | 2.64 | ||
| P/tB | 3.25 | ||
| EV/EBITDA | 30.49 |
EPS(TTM)0.33
EY3.63%
EPS(NY)0.49
Fwd EY5.38%
FCF(TTM)0.07
FCFY0.8%
OCF(TTM)0.19
OCFY2.07%
SpS2.39
BVpS3.44
TBVpS2.8
PEG (NY)1.18
PEG (5Y)N/A
Graham Number5.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 3.67% | ||
| ROCE | 5.79% | ||
| ROIC | 4.09% | ||
| ROICexc | 4.12% | ||
| ROICexgc | 4.85% | ||
| OM | 10.32% | ||
| PM (TTM) | 5.28% | ||
| GM | 33.7% | ||
| FCFM | 3.02% |
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
ROICexc(3y)7.24%
ROICexc(5y)8.93%
ROICexgc(3y)8.98%
ROICexgc(5y)20.95%
ROCE(3y)9.98%
ROCE(5y)12.18%
ROICexgc growth 3Y-14.52%
ROICexgc growth 5Y-38.93%
ROICexc growth 3Y-7.16%
ROICexc growth 5Y-15.5%
OM growth 3Y-8.94%
OM growth 5Y-7.19%
PM growth 3Y77.6%
PM growth 5Y-19.03%
GM growth 3Y-2.8%
GM growth 5Y3.07%
F-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 10.9 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 147.99% | ||
| Cap/Sales | 4.83% | ||
| Interest Coverage | 4.14 | ||
| Cash Conversion | 57.78% | ||
| Profit Quality | 57.21% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 5.22 |
F-Score7
WACC8.59%
ROIC/WACC0.48
Cap/Depr(3y)65.64%
Cap/Depr(5y)54.49%
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.8%
Profit Quality(3y)176.81%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.81%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%50%
EPS Next Y23.27%
EPS Next 2Y21.64%
EPS Next 3Y20.08%
EPS Next 5Y15.5%
Revenue 1Y (TTM)-18.35%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%32.92%
Revenue Next Year17.42%
Revenue Next 2Y15.68%
Revenue Next 3Y13.8%
Revenue Next 5Y11.37%
EBIT growth 1Y-19.67%
EBIT growth 3Y12.23%
EBIT growth 5Y13.73%
EBIT Next Year81.24%
EBIT Next 3Y35.24%
EBIT Next 5Y24.76%
FCF growth 1Y-84.63%
FCF growth 3YN/A
FCF growth 5Y15.88%
OCF growth 1Y-62.6%
OCF growth 3YN/A
OCF growth 5Y17.31%
SHOALS TECHNOLOGIES GROUP -A / SHLS FAQ
Can you provide the ChartMill fundamental rating for SHOALS TECHNOLOGIES GROUP -A?
ChartMill assigns a fundamental rating of 6 / 10 to SHLS.
What is the valuation status for SHLS stock?
ChartMill assigns a valuation rating of 5 / 10 to SHOALS TECHNOLOGIES GROUP -A (SHLS). This can be considered as Fairly Valued.
Can you provide the profitability details for SHOALS TECHNOLOGIES GROUP -A?
SHOALS TECHNOLOGIES GROUP -A (SHLS) has a profitability rating of 6 / 10.
What is the earnings growth outlook for SHOALS TECHNOLOGIES GROUP -A?
The Earnings per Share (EPS) of SHOALS TECHNOLOGIES GROUP -A (SHLS) is expected to grow by 23.27% in the next year.